Covered Calls Expiry and Closing: Taiwan Semi (TSMJV), Suntech Power (STPLJ) and Plum Creek Timber (PCLKJ)

Our October 12.5 covered calls on Taiwan Semi (TSMJV) expired worthless. Also, we closed our December 50 covered calls on Suntech Power (STPLJ) and the November 50 covered calls on Plum Creek Timber (PCLKJ). The options netted a gain of about 5%, 13% and 14% against our Taiwan Semi, Suntech Power, and Plum Creek Timber shares respectively. We are showing a gain of just fewer than 4% for the year on our transactions. We will look into liquidating some of our shares before the end of the year to realize capital losses for tax purposes as the portfolio overall is well in the red – it is a question of deciding which ones to liquidate and in what manner (selling outright as opposed to writing near-the-money options and liquidating through automatic option exercise or selling after expiry).

The list of stocks/options sold during the year and the gain/losses are listed below:

Stock	Buy Date	Buy Price	Sell Date	Sell Price	% Gain (Loss)	% Portfolio Return*
LDK Solar (LDK)	11/21/2007	30.30	01/08/2008	40.83	34.75	2.64
Fannie Mae (FNM)	02/15/2008	30.70	03/10/2008	19.82	(35.44)	(2.18)
Navteq Inc.(NVT)	03/11/2008	73.32	03/12/2008	72.15	(1.62)	(0.06)
Suntech March 45 Call (STPCI)	10/15/2007	NA	03/22/2008	NA	NA	0.50
LDK Solar March 40 Call (LDKCH)	02/13/2008	NA	03/22/2008	NA	NA	0.44
Taiwan Semi April 12.5 Call (TSMDV)	10/18/2007	NA	04/20/2008	NA	NA	0.1664
Cypress Semi April 27 Call (CYDB)	04/04/2008	NA	04/20/2008	NA	NA	0.2137
Cypress Semi (CY)	04/02/2008	24.89	04/20/2008	26.95	8.26	0.4113
EMC Corporation May 16 (EMCEQ) Call	04/23/2008	NA	05/17/2008	NA	NA	0.1639
EMC Corporation (EMC)	04/08/2008	15.00	05/17/2008	15.97	6.48	0.2915
Suntech June 45 Call (STPFI)	04/01/2008	NA	06/05/2008	NA	NA	0.3538
Taiwan Semi Oct 12.5 Call (TSMJV)	04/21/2008	NA	10/18/2008	NA	NA	0.2061
Plum Creek Timber Nov 50 Call (PCLKJ)	06/03/2008	NA	10/21/2008	NA	NA	0.2028
Suntech Power Dec 50 Call (STPLJ)	06/06/2008	NA	10/21/2008	NA	NA	0.4656
Realized Gain/(Loss) YTD	-	-	-	-	-	3.6698

• % Gain/Loss Relative to Portfolio Value at Beginning of Year + Deposits
• The table assumes realization of profits associated with selling options only after the option is exercised or expiry.